CBS Performance Measurement & KPIs 2

Question 1

A company's customer satisfaction score drops from 87% to 79% over two quarters. What is the MOST strategic first response?

Accepted Answer

Conduct root cause analysis to identify drivers of the decline

Answer

Root cause analysis identifies the underlying drivers of performance decline before implementing corrective actions.

Question 2

Which type of KPI measures outcomes that have already occurred and cannot be changed?

Accepted Answer

Lagging indicator

Answer

Lagging indicators reflect past performance outcomes, such as revenue earned or customer churn rate.

Question 3

An organization uses a Balanced Scorecard. Under which perspective would 'employee training hours per quarter' be classified?

Accepted Answer

Learning & Growth

Answer

Employee training metrics fall under the Learning & Growth perspective, which focuses on organizational capability development.

Question 4

What does a KPI cascade ensure in a large organization?

Accepted Answer

That executive KPIs are broken into aligned metrics at every organizational level

Answer

KPI cascading aligns departmental and individual metrics with enterprise-level strategic objectives.

Question 5

Which of the following BEST describes an Objectives and Key Results (OKR) framework?

Accepted Answer

A goal-setting method pairing qualitative objectives with measurable key results

Answer

OKRs combine an inspirational qualitative objective with 2–5 quantitative key results that measure progress toward it.

(CBS) Certified Business Strategist Practice Test